Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2018 Earnings Presentation
25 slides from Banca Transilvania SA's earnings presentation, Nov 15, 2018
Slide 1: Q3 2018 financial results
BANCA TRANSILVANIA Q3 2018 financial results November 15th 2018 Clasificare BT: Uz Intern
Slide 2: Disclaimer
Disclaimer The information contained in the present document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of this information or opinions contained her
Slide 3: Agenda
Agenda 1 Banking sector dynamics 2 Q3 2018 Highlights 3 Performance in Q3 2018 4 Overview of business lines 5 BT Financial Group a Financial statements 2 Clasificare BT: Uz Intern
Slide 4: Bank assets continued to expand during 1H18 reaching RON 435bn
Bank assets continued to expand during 1H18 reaching RON 435bn as credit activity gathers pace Bank assets rose 1.6% YTD as of Jun Loan quality further improving, end NPE ratio drops below 6% total bank net assets, RONbn source: NBR NPE ratio (EBA), % source: NBR 50000% 45000% 428 435 40000% 394 377
Slide 5: Lending up 6.3% YoY to RON 248bn end of Q3'18
Lending up 6.3% YoY to RON 248bn end of Q3’18 Private loans expanding at a fast pace Housing loans remain the main driver of credit growth %YoY source: NBR YoY, RONbn source: NBR 9% 20 non-financial corporate loans 7.4% 8% financial corporate (excl. MFIs) loans 6.8% household - other loans 6.6 15 ho
Slide 6: Local currency loans at RON 162bn make up 2/3 of private credit
Local currency loans at RON 162bn make up 2/3 of the private credit LCY loans more than double compared to All types of credit are now mostly RON 2010 denominated RONbn source: NBR structure by currency as of Sep source: NBR 162 10 0% FCY loans 16000% 146 14% 141 141 90 % 22% 14000% 132 133 35% 126
Slide 7: The real economy & investment cycle
The real economy & investment cycle Evolution around the potential pace Deterioration of the current account GDP (%, YoY) source: Statistics Office Current account deficit (EUR bn, TTM) source: NBR 12 5 10 8 0 1Q 11 1Q 13 1Q 14 1Q 15 1Q 17 1Q 10 3Q 11 1Q 12 3Q 13 1Q 16 1Q 18 3Q 14 3Q 17 3Q 10 3Q 12
Slide 8: The financial economy
The financial economy Inflationary pressures fading out gradually, while EUR/RON resilient to the volatility on the global markets Inflation changed the trend EUR/RON stability 8CPI (%, YoY) source: Statistics EUR/RON source: NBR 4.8 Office 6 4.8 4.7 4 4.7 2 4.6 0 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
Slide 9: Banca Transilvania's business development and financial performance in Q3 2018
Banca Transilvania’s business development and financial performance in Q3 2018 BankingBT: Clasificare sector dynamics Uz Intern Q3 2018 Highlights Performance in Q3 2018 Overview of business lines BT Financial Group
Slide 10: Q3 2018 BT Highlights
Q3 2018 BT Highlights YTD Sep 2018 YTD Sep 2017 ∆ profitability Net interest income RONmn 1,562.9 1,320.3 18.4% Net fee and commission income RONmn 466.7 424.3 10.0% Operating expenses RONmn (1,053.3) (957.6) 10.0% Gross profit before provisions RONmn 1,189.2 959.6 23.9% Net income RONmn 979.1 779.8
Slide 11: Business performance Q3 2018 at a glance
Business performance Q3 2018 at a glance Total assets at RON 64.7bn Balance sheet consolidation Capital adequacy ratio at Strong capital base, supporting organic and non 23.16% organic growth Net fees and commissions at Increased number of operations and additional cross- RON 467mn +10% Y/Y sell CoR
Slide 12: Trends in income structure
Trends in income structure RONmn YTD Sep 2017 YTD Sep 2018 +18.4% 1,563 1,320 +10.0% 1,053 958 +10.0% 467 424 +9.0% 162 176 Net interest income Net fee and Net trading income Operating expenses commission income 11 BankingBT: Clasificare sector dynamics Uz Intern Q3 2018 Highlights Performance in Q3
Slide 13: Loan structure
Loan structure Loans to households, RONbn Loans to companies, RONbn 18.0 16.6 16.7 0.1 0.0 15.0 4.9 9.3 4.3 8.4 10.7 11.7 8.2 8.7 Dec’17 Sep’18 Dec’17 Sep’18 Other Housing Consumption SMEs Large corporates 78% 22% 80% 20% RON FX RON FX *SMEs identified according to internal classification rules 12 B
Slide 14: Deposit structure
Deposit structure Deposits from households, RONbn Deposits from companies, RONbn 34.4 18.7 18.0 30.4 13.8 7.7 11.3 8.4 19.1 20.6 11.0 9.6 Dec’17 Sep’18 Dec’17 Sep’18 Current accounts Deposits SMEs Large corporates 54% 46% 72% 28% RON FX RON FX *SMEs identified according to internal classification ru
Slide 15: NPL ratio at 3.13%
NPL ratio at 3.13% Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 127% 127% 122% 119% 119% 117% 54% 45% 45%46% 46% 40% 40% 49% 33% 43% 46% 77% 81% 79% 78% 74% 73% 2013 2014 2015 2016 2017 Sep’ 2018 NPL coverage with mortgage collaterals NPL coverage with prov
Slide 16: Retail banking
Retail banking retail loan portfolio reached RON 18bn as of Sep 2018 18.0 16.7 0.2 60,000 non-card retail loans disbursed in 15.1 the first nine months of 2018 13.6 3.2 mn active cards, with a market share of about 19% 3.3 The Bank manages a portfolio of 410.000 credit cards, representing 30%
Slide 17: SME banking
SME banking SME loan portfolio at RON 4.9bn and 252,400 active clients 4.9 4.3 • First non-banking solutions platform for SMEs, BT Store 3.2 3.1 0.3 2.6 2.5 • Banca Transilvania continued its specific focus on the SME business sector, offering more than 15,000 new loans in the first nine months of 2
Slide 18: Corporate banking
Corporate banking corporate loan portfolio reached RON 11.7bn 11.7 11.0 11.1 10.7 10.0 0.9 9.9 • Sectorial specialization is a main focus • BT is present with lending facilities especially in the industrial manufacturing and agribusiness segments 10.1 • Joint actions BT and Bp to ensure common clien
Slide 19: Banca Transilvania Financial Group
Banca Transilvania Financial Group as of 30.09.2018* Total assets: RON 64.7bn Total assets: RON 9.1bn Total assets: RON 3.5bn Total assets: RON 136mn Total assets: RON 162mn Total assets: RON 906mn Total assets: RON 288mn AuM: RON 3,824mn *Total assets for Bancpost are computed under IFRS; Total ass
Slide 20: Highlights – consolidated figures
H1 2018 Highlights – consolidated figures YTD Sep 2018 YTD Sep 2017 ∆ Net interest income RONmn 2,089.6 1,379.0 51.5% Net fee and commission income RONmn 569.2 458.8 24.1% Operating expenses RONmn (1,587.3) (1,056.2) 50.3% profitability Gross profit before provisions RONmn 1,668.6 1,033.5 61.5% Net
Slide 21: Annex I: income statement YTD Sep 2018 – individual figures
annex I income statement YTD Sep 2018 – individual figures IFRS individual, RONmn YTD Sep 2018 YTD Sep 2017 ∆ Net interest income 1,562.9 1,320.3 18.4% Net fee and commission income 466.7 424.3 10.0% Net trading income 176.5 162.0 9.0% Other net income 36.5 10.7 240.6% Operating income 2,242.5 1,917
Slide 22: Annex II: balance sheet 30.09.2018 – individual figures
annex II balance sheet 30.09.2018 – individual figures IFRS individual, RONmn Sep 2018 Dec 2017 ∆ Cash & cash equivalents 6,204.0 6,637.7 -6.5% Placements with banks 4,133.7 5,302.3 -22.0% Loans to customers, net 32,510.6 29,914.0 8.7% T-bills & securities 19,478.8 16,115.7 20.9% Fixed assets 583.2
Slide 23: Annex III: income statement YTD Sep 2018 – consolidated figures
annex III income statement YTD Sep 2018 – consolidated figures IFRS consolidated, RONmn YTD Sep 2018 YTD Sep 2017 ∆ Net interest income 2,089.6 1,379.0 51.5% Net fee and commission income 569.2 458.8 24.1% Net trading income 169.9 204.9 -17.1% Other net income 427.2 47.0 809.8% Operating income 3,25
Slide 24: Annex IV: balance sheet 30.09.2018 – consolidated figures
annex IV balance sheet 30.09.2018 – consolidated figures IFRS consolidated, RONmn Sep 2018 Dec 2017 ∆ Cash & cash equivalents 8,823.7 6,637.7 32.9% Placements with banks 5,301.6 5,348.1 -0.9% Loans to customers, net 38,433.4 30,249.0 27.1% T-bills & securities 22,076.8 16,096.2 37.2% Fixed assets 80
Slide 25: Banca Transilvania HQ
Banca Transilvania HQ 8, G. Baritiu Street, Cluj-Napoca 400027, Romania + 40 264 407 150 + 40 264 407 179 /FAX [email protected] www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro www.bt24.ro facebook.com/BancaTransilvania twitter.com/b_Transilvania # linkedin.com/compa